Aravind Panagariya said the Union Finance Minister had already had a commitment to streamline the corporate income tax and hopefully some progress would be made. (Reuters)

Terming Prime Minister Narendra Modi’s demonetisation scheme as a “frontal attack” on black money, NITI Ayog vice-chairman Arvind Panagariya today said more such actions are in store to curb corruption.

“If you are asking that demonetisation is the last step to curb corruption, then I will say no. I think more actions will be taken, but in terms of taking action against the existing black money and also in changing the roles, and the policy regime in such a way that future accumulation of black money is also discouraged…. So we need to do both,” Panagariya told a local news channel during his visit to the state to attend a function.

Stating that he should not speculate on the actions to be taken, the NITI Ayog vice-chairman said the Prime Minister has to decide about this in consultation with his advisors.

“We will wait and see…,” he said adding, discussion were on and hopefully some action would be seen in the budget.

He said the Union Finance Minister had already had a commitment to streamline the corporate income tax and hopefully some progress would be made.

“Some progress was made last year. Lets hope more progress in the coming year. So simplification of taxes and reduction in the tax rates should discourage accumulation of black money,” Panagariya said.

Replying to a question on the changing scenario in wake of demonetisation scheme, Panagariya said, “There will be some impact in the 2016-17 fiscal because of demonetisation. We have only the five months left.

“In the pre-demonetisation, we did okay and the GDP growth was 7.2 per cent. Currently we don’t have information to access, but I can tell you of 13 analysts and observers, 11 said the impact will be less than one per cent while two predicted a larger impact,” he said.

Asked about the negative impact of demonetisation on the people, Panagariya said, “The people have been with the Prime Minister despite hardships and they are also observing that he is doing it ultimately for the goof of the country.”

“The black money holders are being punished. I will say few governments had this courage to make a frontal attack on black money. The Prime Minister has, in fact, done a frontal assault on black money and people are generally supportive of it,” Panagariya added.

Since you failed miserably, you have to find new ways and subject the entire potion to your silly experiments!

Reply

Mallikarjun Iyyer

Dec 23, 2016 at 12:15 pm

demonetisation should not be looked for economic impact alone but setting order and also as a side effects in controlling lawlessness which costs economy dearly many time say whether it is actofterror, criminal activities beyond brining lawlessness under control. Also going beyond lawlessness it restoring right of every human being to survive instead of those only with money and political power in the society. We have seen how indecently decent people from celebrities, businessmen, professionals, educated literate are while bringing disrepute to their respective fraternities they belong to. Beyond, the govt should also investigate trusts around the country where nefarious activities are rampant by having front-end insutions such as school/colleges/charity houses while the trustees enjoy the gains from these activities by buying luxuries for themselves. Doctors with marble house cheating rural folk on the name specialits, tuition rackets run by paying IIT profs. on their wives names for specialist lectures offered paid in cash. Temple/wakf trust on the name of charities, etc. Rule of law says that the money aculated by trusts should be spent money received in the financial years, while most trusts run and make profits and buy privileges for the trustees/cartel in elected bodies/dynasties at will by making money. MAny of these trusts have IT tax officials/civil servants/retired govt. officials/politically close enies as member trustees to sauard them from their misdemeanours and lawlessness. Along with corporate, trusts should finances should also be examined.